Markets

Rupee rises 20 paise to 70.87 against USD in early trade

The Indian rupee appreciated by 20 paise to 70.87 against the US dollar in early trade on Thursday, as easing crude prices and optimism regarding US-China trade talks strengthened investor sentiments

Mumbai | The Indian rupee appreciated by 20 paise to 70.87 against the US dollar in early trade on Thursday, as easing crude prices and optimism regarding US-China trade talks strengthened investor sentiments.

At the interbank foreign exchange the rupee opened at 70.96, then gained further ground and touched a high of 70.87, registering a rise of 20 paise over its previous close.

On Wednesday, rupee had settled at 71.07 against the US dollar.

The domestic unit however could not hold on to the gains and was trading at 71.03 against the dollar at 1008 hrs.

Forex traders said investors were optimistic about the US-China trade talks.

Meanwhile, ahead of the next round of trade negotiations between the two giant economies, US President Donald Trump said China is facing their hardest time in decades in maintaining the economy and badly wants to have a trade deal with the US.

"China is having a hard time at this moment. And I think they'd like to make a deal very badly. And so we have a lot of things that are really exciting," Trump told reporters at the White House.

Moreover, weakening of the American currency vis-a-vis other currencies overseas also supported the rupee. The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.12 per cent to 98.99.